Regarding the beta coefficient

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Reference no: EM13940167

Which of the following statements is FALSE regarding the beta coefficient?

A . It is a measure of systematic risk.

B. Beta measures the sensitivity of an asset's returns to the market portfolio returns.

C. According to CAPM, a stock with the beta of zero is expected to earn the same rate as the market portfolio.

D. The risk premium of an asset will increase if the beta of that asset increases.

Reference no: EM13940167

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